Energy Markets Still Frothy
More good stuff from ISI:
"* Unknown to most all market watchers, Angola's entry into OPEC last month came with a proviso that the African producer's supply projects will be "grandfathered" and not subject to quota restrictions.
*We continue to view Angola's supply as being effectively part of non-OPEC. The country's production growth this year will take output from a wee under 1.5 mm b/d in December to just over 1.9 mm b/d by the end of '07.
*The total non-OPEC growth we see for 2007 should ease market concerns about spare production capacity. A dissipation of these fears is expected by us to eventually help lever down crude prices.
*Even with arctic air, distillate stocks are expected to draw by a smaller than normal volume. We continue to focus on total US demand numbers which turned decidedly weak in December."
So, in other words, fundamentals stink!
"* Unknown to most all market watchers, Angola's entry into OPEC last month came with a proviso that the African producer's supply projects will be "grandfathered" and not subject to quota restrictions.
*We continue to view Angola's supply as being effectively part of non-OPEC. The country's production growth this year will take output from a wee under 1.5 mm b/d in December to just over 1.9 mm b/d by the end of '07.
*The total non-OPEC growth we see for 2007 should ease market concerns about spare production capacity. A dissipation of these fears is expected by us to eventually help lever down crude prices.
*Even with arctic air, distillate stocks are expected to draw by a smaller than normal volume. We continue to focus on total US demand numbers which turned decidedly weak in December."
So, in other words, fundamentals stink!
posted by Never-Limp at 7:26 AM
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